EU supports EUR 101 mln Eximbanka, SlovakAid investment program for Ukrenergo, Ukrhydroenergo with guarantee

The European Commission has concluded a guarantee agreement with the Slovak Eximbanka (Export-Import Bank of the Slovak Republic) for the implementation of the Ukraine-Slovakia Energy Security and Grid Stability Programme worth EUR 101 million, which consists of a number of investment projects in the field of energy infrastructure.

As an Interfax-Ukraine correspondent reported, the signing took place on Wednesday during the Ukraine-EU Business Summit in Brussels.

The basis of the program is an EU guarantee for EUR 69.5 million within the Ukraine Investment Framework (UIF) component of the Ukraine Facility, which covers 90% of an Eximbanka loan for EUR 77.2 million.

A grant component of the program worth EUR 18.8 million and technical assistance for EUR 4.4 million from UIF funds is provided by the Slovak Agency for International Development Cooperation (SlovakAid).

The financing will be directed to projects of the Ukrainian state energy companies Ukrenergo and Ukrhydroenergo with an emphasis on transmission system stability, strengthening energy security, and the gradual integration of Ukraine into the European energy market.

"In this project, Eximbanka acts as an implementing partner of the European Union, linking European financial instruments with specific investment projects in Ukraine. Our task is not only to provide financing, but also to actively manage risks, mobilize private capital, and ensure that European resources are reflected in real, feasible projects with a measurable impact," Eximbanka CEO Rastislav Podhorec said in a report on the bank’s website.